This is the REAL Cost of Buying a House – What Realtors Don’t Want You to Know – Local Records Office

LOCAL RECORDS OFFICE — With 2016 well under way, thoughts to buying that dream home starts to heat up says, Local Records Office. Many people take this time of the year to do their research, examine finances, and start the decision process of whether or not it is the right year to buy. But there are a few things to keep in mind other than the purchase price. There are associated costs with buying a home that must be kept in mind, and more importantly, factored into budget.

Pre-Closing Costs

Home Inspection

Getting a professional home inspector is always a smart decision. Things heating, electrical, and plumbing problems aren’t always obvious to untrained eyes says, Local Records Office. A qualified home inspector is there to help uncover any problems that could create quite a financial burden to buyers.

Appraisal

More and more mortgage lenders are asking for home appraisals prior to closing. Before they agree to lend you the money to purchase a home, lenders are just making sure that you haven’t paid too much for a property. An appraisal gives the lender another opinion about your potential new home and gives them the peace of mind that the value matches the price you have agreed to pay says, Local Records Office.

Closing Costs

Land Transfer Tax

In Olympia, Washington buyers are required to pay up to 2% of the purchase price of a home as a tax. In the City of Olympia, there are additional taxes on top of that. These can be significant amounts given the price of housing. First time homebuyers are eligible for tax refunds but it is always wise to talk to your real estate professional regarding this significant cost.

Mortgage Insurance

If you cannot afford to put down 20% of the purchase price down on your home, you will probably be required to by mortgage insurance. This will be for the benefit of your mortgage lender in the event that you cannot pay your mortgage. Rates will vary so it is always best to shop around.

Legal Fees

Buying a home is a complicated contract that involves lots of forms, documents, and ultimately legal advice. Your real estate lawyer will do all the heavy lifting, title search, registering your mortgage and deed, as well as producing a Statement of Adjustments says, Local Records Office.

Title Insurance

This type of insurance is for the benefit of the buyer. It ensures against such things as title fraud, errors in public records, any encroachments with neighbors, and many more. This should be discussed with your lawyer but is definitely worth the investment.

Adjustments

As mentioned earlier, your lawyer will prepare a statement of adjustments says, Local Records Office. This basically will outline who owes what between the buyer and the seller. For example, if the seller paid the yearly property tax at the beginning of the year, and the buyer purchases the home half way through the year, the buyer would be responsible for paying half of the property tax.

Home Insurance

You must have home insurance before a lender will release the funds to purchase a home says, Local Records Office.

HST

This 13% tax is applied ONLY to brand new homes and not homes that are resale’s.

After Closing Costs

Moving Costs

This will depend on how much stuff you have and how far you are moving and whether you are moving everything yourself or hiring a professional moving company.

Utility and Service Hook Ups

You may find fees to hook up gas, hydro, water, and telecommunications.

Renovations and Repairs

It is a good idea to set some money aside for re-ups and repairs on the new home. Even if it is just some painting that needs to be done, the cost of all the supplies and paint can add hundreds to your budget. Also set aside some money to ‘freshen’ up your new home with such things as furniture, appliances, and other accessories that may or may not have been on that original budget you set out with.